REPORT TO THE CITY COUNCIL
October 9, 2014
FROM: BRUCE RUDD, City Manager
BY: RENENA SMITH, Assistant City Manager
SUBJECT
Title
Approve lease agreement between the City of Fresno and The Fresno Arts Council for use of the Historic Water Tower located at Fresno and "O" Street (Council District 3)
Body
RECOMMENDATION
Staff recommends that the City Council approve the lease agreement with The Fresno Arts Council to operate the Historic Water Tower as an art gallery, gift shop and visitor's center. City Council approval authorizes the City Manager and City Attorney to execute the contract effective November 1, 2014.
EXECUTIVE SUMMARY
HandsOn Central California (HandsOn) entered into a Lease Agreement with the City of Fresno on September 1, 2011, to provide visitor's services at no net cost to the City. HandsOn paid no rent, but provided all staffing for the Tower and paid all utilities, janitorial and minor maintenance costs for the Tower. The Lease Agreement has expired and The Fresno Arts Council wishes to continue operating the Historic Water Tower, under the same terms, as an art gallery, gift shop, and information center.
The Lease Agreement has a term of three (3) years, with two (2) one year extensions and will be effective November 1, 2014. Under the lease terms the City will receive no monetary exchange but will benefit by having the downtown icon in use with operating costs paid by The Fresno Arts Council.
BACKGROUND
HandsOn Central California, a non-profit agency that provides volunteers to various agencies, entered into a Lease Agreement with the City on September 1, 2011, and has been operating a Visitor's Center at no cost to the City. They have been providing tourism-related information and displaying and selling handmade works of art from local Fresno artists. The lease expired on June 30, 2014. A month to month lease has been granted to HandsOn pending final authorization. A Request for Information (RFI) was opened on August 8, 2014 to determine business interest in the facility. The RFI closed on August 29, 2014 with The Fresno Arts Council as the only respondent.
The City of Fresno and The Fresno Arts Council wishes to enter into a new agreement to continue operating Historic Water Tower under the same provisions as provided to HandsOn. The Fresno Arts Council will manage the gallery and daily operations, and work with the many artists who participate in this program. HandsOn will continue to recruit volunteers to work in the Water Tower and the Fresno Cultural Arts Rotary Club will provide support to help cover the PG&E expense. This collaborative will continue to maintain and develop the Visitor's Center services currently provided to the City of Fresno.
ENVIRONMENTAL FINDINGS
Staff has performed a preliminary environmental assessment of this project and has determined that it falls within the Categorical Exemption set forth in CEQA Guidelines 15301/Class 1 which exempts projects where there is no expansion of existing use because Fresno Arts Council will be operating the Water Tower on the same terms as the previous operator. Furthermore, Staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 apply to this project.
LOCAL PREFERENCE
N/A
FISCAL IMPACT
The City will receive no rent from The Fresno Arts Council, however they will pay all operating expenses, including utilities, janitorial, and minor maintenance. The City will continue to provide regular janitorial services at the nearby restrooms and surrounding landscape areas.
Attachments:
Historic Water Tower Lease Agreement - The Fresno Arts Council
RFI Response - The Fresno Arts Council
Letters of Support from:
Hands-On
Fresno Cultural Arts Rotary Club